WORLD TRADE  
ORGANIZATION   
G/SCM/N/220/EEC/Add.10
16 November 2011 
 (11-5229) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1 
of the GATT 1994 and Article 25 of the Agreement 
on Subsidies and Countervailing Measures 
 
EUROPEAN UNION 
 
Addendum 
 
 
 The following addendum to the notification of  the European Union relates to subsidy 
programmes of Germany.  
 
_______________ G/SCM/N/220/EEC/Add.10 
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GERMANY 
 
TABLE OF CONTENTS 
 
Page 
 
I.  GERMAN SHIPYARDS (W ERFTHILFEN) ......................................................................... 3  
II.  GERMAN SHIPYARDS (INNOV ATIONSBEIHILFE) ....................................................... 3  
III. REGIONAL PROGRAMMES IN SUPPORT OF COMMERCE AND 
INDUSTRY (LAND BAYERN) ............................................................................................... 4  
IV.  JOINT TASK ON "IMPROVING THE REGIONAL ECONOMIC 
STRUCTURE" .................................................................................................................... ...... 5 
V.  REGIONAL ECONOMIC SUPPORT PROGRAMME (LAND NORDRHEIN 
WESTFALEN) .................................................................................................................... ...... 7 
VI.  REGIONAL IMPROVEMENT PROGRAMME HESSE .................................................... 7  
VII. REGIONAL AID PROGRAMME (L AND RHEINLAND-PFALZ) ................................... 8  
VIII. NATIONAL PROGRAMME FOR CIVIL AERONAUTICAL RESEARCH .................... 9  
IX.  REGIONAL PROGRAMME TO MODERN IZE MARKETING FACILITIES ............. 10  
X.  OPTIMIZING OF THE CONVERSION OF CELLULOSE CONTAINING 
AGRICULTURAL RESIDUAL MATERIALS FOR THE PRODUCTION OF 
BIOGAS (LAND NIED ERSACHSEN) ................................................................................. 11  
  G/SCM/N/220/EEC/Add.10 
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  I. GERMAN SHIPYARDS (WERFTHILFEN) 
1. Name of the subsidy scheme or ad hoc subsidy 
 
 Interest Rate Grants to Finance Orde rs to German Shipyards ("Werfthilfen"). 
 
2. Form of the subsidy 
  Grant.  
3. Subsidy per unit 
 
 Total amount of assistance provi ded in 2009:  €2.2 million. 
 Total amount of assistance provi ded in 2010:  €0.6 million. 
 4. Objective and/or purpose of the subsidy 
  The eighth shipyard assistance programme (VIII.  Werfthilfeprogramm) exists to provide 
non-repayable interest rate grants under the rele vant OECD Understanding on Export Credits for 
Ships (1981).  In the frame of this Export Credit Agreement, which expired in April 2002, only legal 
obligations from previous years will be completed.  
Legal basis: Commitment authorizations in the Federal budget from previous 
years. 
 
 Guidelines from the Federal Ministry of Economics and Technology. 
 
Modes of payment: Support is given to th e construction and r econstruction of high 
technology marine vessels (merchant vessels), respecting the OECD Understanding on Export Credits for Ships: 
 
- 8.5 year term; - 20 per cent advance payment; 
- minimum interest rate of 8 per cent p.a.. 
 5. Duration of subsidy and other time-limits attached to it 
  No new commitments.  
6. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 N.A. 
 
II. GERMAN SHIPYARDS (INNOVATIONSBEIHILFE) 
1. Name of the subsidy scheme or ad hoc subsidy 
 
 Aid granted for innovation in existing shipbuilding, ship repair or ship conversion yards, 
provided that it relates to the industrial a pplication of innovative products and processes 
("Innovationsbeihilfen").  G/SCM/N/220/EEC/Add.10 
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  2. Form of the subsidy 
 
 Grant (refundable in case of continued successful application).  
3. Subsidy per unit 
  Total amount of assistance provi ded in 2009:  €5.5 million. 
 Total amount of assistance provi ded in 2010:  €8.5 million. 
 
4. Objective and/or purpose of the subsidy 
 
 Certain features make shipbuilding unique and distinguish it from other industries such as 
small production series, the size, value and complexity  of the units produced as well as the fact that 
prototypes are generally used commercially.  As a consequence, shipbuilding is the only sector 
eligible for innovation aid, as an incentive to technolog ical risk taking.  (EU Framework of state aid to 
shipbuilding). 
 
Legal basis: Commitment authorizations in the Federal budget from previous 
years. 
 
 Guidelines from the Federal Ministry of Economics and Technology. 
 
Modes of payment: 20 per cent gross limite d to expenditure on investments, design, 
engineering and testing activities dir ectly and exclusively related to 
the innovative part of the project. 
 
5. Duration of subsidy and other time-limits attached to it 
 
 The aid for innovation to shipbuilding applies until 31 December 2011. 
 
6. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 N.A. 
 
III. REGIONAL PROGRAMMES IN SUPPORT OF COMMERCE AND INDUSTRY 
(LAND BAYERN) 
1. Name of the subsidy scheme or ad hoc subsidy 
 
 Directive on the promotion of the Bavarian  regional programmes for trade, commerce and 
industry, promulgated by the Bavarian Ministry of Economic Affairs, Transport and Technology on 
27 August 2008 (AllMBl S. 523). 
 
2. Form of the subsidy 
  Investment grant.  Interest rate subsidy (to subsidize loans). 
  G/SCM/N/220/EEC/Add.10 
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  3. Subsidy per unit 
 
 Total support (million Euros)  
 
2009 2010
Investment grant 73.1 70.8
Interest rate subsidy 11.1 8.6
Assisted investment volume 897.5 693.2
Number of assisted companies 502 437
 
4. Objective and/or purpose of the subsidy 
 
 Aid to finance investments in  trade, industry and tourism to  create and secure jobs and 
training places in assisted areas. 
  Objective: Improving regional economi c structures and tourism offers; 
   increasing the economic strength of structurally weak areas. 
 5. Duration of subsidy and other time-limits attached to it 
  Until 31 December 2013.  
6. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.  Outside the assisted areas pur suant to the Joint Federal Government/Laender 
Scheme for the Improvement of Regional Economic Structures, support is restricted to small and 
medium-sized enterprises (SMEs) within the m eaning of articles 1-12 and 15 of the Commission 
Regulation (EC) No. 800/2008 of 6 August 2008 declari ng certain categories of aid compatible with 
the common market in application of Articles 87 and 88 of the Treaty (EC L 214 dated 
9 August 2008). 
 
IV. JOINT TASK ON "IMPROVING THE REGIONAL ECONOMIC STRUCTURE" 
1. Title of the subsidy programme 
 
 Joint Task on "Improving the Regional Economic Structure" (hereinafter:  "Joint Task").  
2. Period covered by the notification 
 
 2009, 2010. 
 
3. Policy objective and /or purpose of the subsidy 
 
 The Joint Task is a regional policy device.  The primary objective of regional policy is to 
enable structurally weak regions to keep pace w ith the general economic de velopment by balancing 
territorial disadvantages and by reducing regional  development differences.  Regional policy focuses 
on supporting regional development activities with a view to raising the levels of employment and 
income in assisted areas.  Assisted areas are rede fined in multiannual intervals on the basis of regional 
indicators (e.g. level of income, unemploym ent rate, infrastructural development). 
 G/SCM/N/220/EEC/Add.10 
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  4. Background and authority for the subsidy (inc luding identification of the legislation under 
which it is granted) 
 
 On the basis of the federal German Constitu tion, the Federation (Bund) has, in 1969, passed 
the Federal Act on the Joint Task (Federal Law Ga zette 1969 part I, p. 1861).  The Federal Act on the 
Joint Task was last modified by act of 7 September 2007 (Federal Law Gazette 2007 part I, p. 2246). 
 
 On the basis of the Federal Act on the Jo int Task, Bund and Länder have, since 1969, 
commonly conceived the Joint Task Framework.   The Joint Task Framework sets out the 
preconditions under which Joint Task subsidies may be granted. 
  The Joint Task Framework is executed by th e Länder alone.  If a Land decides to grant a 
subsidy under the terms of the Joint Task, the B und co-finances the funding in the amount of 50 per 
cent of the funding granted by the Land.  
5. Form of the subsidy 
 
 Investment grants. 
 
6. To whom and how the subsidy is provided 
 
 A Joint Task subsidy consists of a non-recurring pa yment in the form of an investment grant.  
The payment may be granted by the respective "L and" to eligible projects in assisted areas. 
 
 Projects in commerce and industry are eligible fo r subsidies under the Joint Task if they take 
place in an assisted area and if they generate additi onal income in the region so that, in the long run, 
the region's total level of income is raised in a non-insignificant manner (so called "primary effect"). 
 7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy 
 
 Generally speaking, budget allocations for the Joint Task have been decreased.  The federal 
budgets for 2009 and 2010, respectively, provided the Joint Task with €724 million in federal funds.  
The Länder contribute the same amount in own funds.  
 In 2009, a total amount of €1,001 million was granted by the Länder under the Joint Task in 
order to promote commercial and industrial investment s in assisted areas. 79 per cent of this amount 
(€793.65 million) were granted by the Eastern Lä nder including Berlin.  The amounts indicated 
include federal co-financing contri butions (cf. above, question 4). 
  In 2010, a total amount of €1,076 million was granted by the Länder under the Joint Task in 
order to promote commercial and indus trial investments in assisted areas.  87 per cent of this amount 
(€934.19 million) were granted by the Eastern Länder including Berlin.  The amounts indicated 
include federal co-financing contri butions (cf. above, question 4). 
 8. Duration of the subsidy and/or any other tim e-limits attached to it, including date of 
inception/commencement 
 
 Regional assistance under the Joint Task consis ts of a non-recurring subsidy payment granted 
to eligible projects in assisted areas.  The Eu ropean Commission has aut horized the Joint Task 
assisted areas map until 2013.  This authorizati on notwithstanding, the Joint Task is under no time-
limit. 
  G/SCM/N/220/EEC/Add.10 
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  9. Statistical data permitting an assessment of th e trade effects of the subsidy.  The specific 
nature and scope of such statis tics is left to the judgement of the notifying Member.  To the 
extent possible, relevant and/or determinable, however, it is desirable that such information 
include statistics of production, consumption,  imports and exports of the subsidized 
product(s) or sector(s) 
 
 Regional assistance under the Joint Task is  aimed at balancing domestic investment 
disadvantages in structurally weak regions (assisted  areas).  The Joint Task contributes to raising 
income and employment levels in these regions.  In terms of competition, regional assistance under 
the Joint Task is therefore neutral.  It has no effect on competition in international trade. 
 
V. REGIONAL ECONOMIC SUPPORT PROGRAMME (LAND NORDRHEIN 
WESTFALEN) 
1. Name of the subsidy scheme or ad hoc subsidy 
 
 Regional Economic Support Programme. 
 2. Form of the subsidy 
  Grants towards investment projects of trade and industry and local infrastructure.  
3. Subsidy per unit 
 
 The total amount budgete d for 2009: €117.8million 
 Total number of recipients:  352 
 
 The total amount budgeted for 2010: €61.34million 
 Total number of recipients:  556  
4. Objective and/or purpose of the subsidy 
 
 Improving the regional economic structur e and supporting small and medium-sized 
businesses. 
 5. Duration of subsidy and other time-limits attached to it 
  Not limited.  
6. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Given the objectives of the programme, trade effects cannot be assessed. 
 
VI. REGIONAL IMPROVEMENT PROGRAMME HESSE 
1.  Title of the subsidy programme 
 
 Programme to improve the economic structure of the Land Hesse 
 
2.  Period covered by the notification 
    
    2009, 2010. 
 G/SCM/N/220/EEC/Add.10 
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  3. Policy objective and/or purpose of the subsidy 
 
 Improving the regional economic structur e and supporting small and medium-sized 
enterprises. 
 
4. Form of the subsidy 
  Investment grant.  
5.   To whom and how the subsidy is provided  
 
 The subsidy is provided to producers in small and medium-sized enterprises with a fluctuating 
amount. 
 6.  Subsidy per unit 
  The total amount budgeted for 2009: € 1.5 million  Total number of recipients:                17 
 
 The total amount budgeted for 2010: € 2.5 million  Total number of recipients:                12 
 
7. Duration of subsidy and other time-limits attached to it 
 
 Not limited. 
 
8. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 In 2009 creation of 14 6 jobs by providing financial assist ance to 17 individual promotional 
cases. 
  In 2010 creation of 16 3 jobs by providing financial assist ance to 12 individual promotional 
cases. 
 
VII. REGIONAL AID PROGRAMME (LAND RHEINLAND-PFALZ) 
1. Name of the subsidy scheme or ad hoc subsidy 
 
 Regional aid programme of the Land Rheinland-Pfalz. 
 
2. Form of the subsidy 
 
 Investment grant. 
 
3. Subsidy per unit 
 
 Up to 10 per cent for medium-sized industr ies, 20 per cent for small-sized industries. 
 
 Disbursement in 2009: €21.835 million.  Disbursement in 2010: €9.889 million.  G/SCM/N/220/EEC/Add.10 
 Page 9 
 
 
   
4. Objective and/or purpose of the subsidy 
 
 Promotion of investment in sma ll  and medium-sized industries. 
 
5. Duration of subsidy and other time-limits attached to it 
  Unlimited.  
6. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 In 2009: creation of 1517 jobs by providing financial assistance to 269 individual 
promotional cases. 
  In 2010: creation of 963 jobs by providi ng financial assistance to 181 individual 
promotional cases. 
 
VIII.  NATIONAL PROGRAMME FOR CIVIL AERONAUTICAL RESEARCH 
1. Title of the subsidy programme 
 
 National programme for civil aeronautical research and technology. 
 
2. Period covered by the notification 
 
 2009, 2010. 
 
3. Policy objective and/or purpose of the subsidy 
 
 The programme's intention is to contribute to strengthening innovative medium and long-term 
research and technology in one of the most importa nt key technologies with spin-off effects to other 
sectors. The programme aim is part of the Fede ral government's research and technology policy. 
 
 The priorities of the programme are encourag ing sustainable research in the fields:  
low-pollutant and safe aircrafts of the next genera tion, low noise all-weather helicopters, efficient and 
ecologically friendly engines in line with the ecological goals of the ACARE Vision 2020. 
 
4. Background and authority for the subsidy (inc luding identification of the legislation under 
which it is granted) 
 
 The subsidies are granted by the Federal govern ment and the Federal st ates. The legal basis 
are the Federal government's and the Federal states' budget acts. 
 
5. Form of the subsidy (i.e. gr ant, loan, tax concession, etc.) 
 
 Non-repayable grants.  
6. To whom and how the subsidy is provided 
 
 Subsidies are provided to producing enterp rises, universities and research institutes for 
research and development expenditures. Grants for basic research cover up to 100 per cent, grants for 
industrial research up to 75 per cent of research and development expenditures.  G/SCM/N/220/EEC/Add.10 
Page 10 
 
 
  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible,  the average subsidy per unit in the previous 
year).  Where provision of per unit subsid y information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation 
 
 Total annual amount budgeted for the subsidy: 
 
 2009:  €78.04 million.  2010:  €107.45 million. 
 
IX. REGIONAL PROGRAMME TO MODERNIZE MARKETING FACILITIES 
1. Title of the subsidy  
 
 Financial contribution to the modernizati on of marketing facilities in the area of 
Niedersachsenhalle Verden within Konjunktur programm II / Aufstockungsprogramm "Initiative 
Niedersachsen". 
 2. Covered period/duration of the subsidy: 
  1 March 2010 to 15 December 2011.  
3. Purpose of the subsidy  
 
 Reconstruction of the auction hall; reconstruction and new constr uction of the stable facility 
(cattle and horses). 
 
4. Background for the subsidy  
 
 Subsidy X 87/2010 in accordance to regulation (EC ) No 800/2008 (GBER); administrative 
regulation to § 44 Landeshaushaltsor dnung (Nds. MBl. 1996, S. 1868).  
  Authority: Ministry of Food, Agriculture, C onsumer Protection and Regional Development of 
Lower Saxony. 
 5. Form of the subsidy  
  Grant.  
6. Beneficiary  
 
 Niedersachsenhalle Verden GmbH, 27283 Verden. 
 
7. Subsidy mechanism 
  Fixed amount.  
8. Aid intensity  
 
 35%. 
  G/SCM/N/220/EEC/Add.10 
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  9. Total subsidy amount 
 
 3,000,000 EUR; expenditure in 2010: 1,820,000 EUR; individual aid  
10. Statistical data  
 
 Is not available for this individual subsidy. 
 
X. OPTIMIZING OF THE CONVERSION OF CELLULOSE CONTAINING 
AGRICULTURAL RESIDUAL MATERIALS FOR THE PRODUCTION OF BIOGAS 
(LAND NIEDERSACHSEN) 
1.  Title of the subsidy  
 
The procedural and microbiological optimiza tion of the conversion of cellulose containing 
agricultural residual materials for the production of biogas. 
 
2.  Covered period/duration of the subsidy 
 
 15 November 2008 to 15 November 2011. 
 3. Purpose of the subsidy  
 
 The project shall improve the RUMEN-technology in regard to process engineering. A lot of 
agricultural residual materials and by-products could be utilized by this technology for the production 
of biogas. Within this supported project the tec hnology shall be tested in a pilot scheme as a 
prerequisite for a later use in a bigger scale. 
 
4. Background for the subsidy  
 
 Subsidy X 124/2008 in accordance to regulation (EC )  No 800/2008 (GBER); administrative 
regulation to § 44 Landeshaushaltsor dnung (Nds. MBl. 1996, S. 1868). 
 
 Authority: Ministry of Food, Agriculture, C onsumer Protection and Regional Development of 
Lower Saxony.  
5. Form of the subsidy  
 
 Grant. 
 
6. Beneficiary  
 
 ARES Consultant GbR, 30169 Hannover. 
 
7. Subsidy mechanism  
 
 Fixed amount. 
 
8. Aid intensity  
 
 80%. 
 G/SCM/N/220/EEC/Add.10 
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  9. Total subsidy amount  
 
 Expenditure in 2009: 145,000 EUR; expenditure in 2010: 72,000 EUR; individual aid.  
10. Statistical data  
 
 Is not available for this individual subsidy. 
  
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